We can calculate a weighted average by multiplying the values to average by corresponding weights then dividing the sum of results by the sum of weights. Its clear that the computation of a simple average and a weighted average produces different results. There is no built-in formula in Excel to calculate weighted averages.
Select the cell where the weighted average should go for us thats cell D15 and then type the following formula into the function bar.
You can use SUMPRODUCT formula. But a second shipment of 40 cases costs 30 cents per case because pencils are in high demand. For example a shipment of 10 cases of pencils is 20 cents per case. The Weighted mean is calculated by multiplying the weight with the quantitative outcome associated with it and then adding all the products together.